A travel agency is suing a prominent online travel company, saying it sold ads on its site to fake travel agents that falsely represented travel offers.
The Federal Trade Commission filed a complaint against TravelAway.com Inc. in a California federal court Wednesday.
The FTC claims that TravelAgo’s ads were deceptive in that they promoted travel deals that didn’t exist.
The FTC alleges that Travel Ago created “false, misleading and deceptive advertising” to sell travel deals, including fake offers from companies that didn.
TravelAaway said it stopped selling the ads in late October, but the FTC said the ad revenue it collected was more than what it made from travel.
TravelAway did not immediately respond to a request for comment.
Travel Aaway says it started selling travel deals in September, but stopped in mid-October because of the FTC complaint.
The company said it plans to appeal the FTC’s decision.
Travel Away, which sells travel packages including trips to Hawaii and Alaska, said it has a $2.7 million profit from the ads and expects to generate $5.3 million in ad revenue through October.
The company said the FTC had a “clearly flawed understanding” of the types of travel products it sells.